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HomeMy WebLinkAboutOrdinance No. 2682-2013\\ the c# of // KENA5KA Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2682 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $90,000 IN THE AIRPORT FUND AND IN THE AIRPORT IMPROVEMENT CAPITAL PROJECT FUND FOR REQUIRED MAINTENANCE AT THE AIRPORT'S AUTOMATED FLIGHT SERVICE STATION PURSUANT TO TERMS OF THE LEASE AGREEMENT FOR THE FACILITY WITH THE FEDERAL AVIATION ADMINISTRATION. WHEREAS, Ordinance 2651 -2012 approved a ten (10) year lease to the Federal Aviation Administration for the Airport's Automated Flight Service Station; and, WHEREAS, the terms of the lease require the lessor (the Airport) to recoat /replace the facilities roof in 2013; replace all interior lighting as necessary, within six (6) months; and repaint parking lot markings; and, WHEREAS, the estimated cost of these maintenance items is $90,000; and, WHEREAS, the new lease will increase lease revenue for FY13 by an unbudgeted $90,000; and, WHEREAS, the previously unbudgeted $90,000 in lease revenue is the proper revenue source to support the required maintenance expenditures; and, WHEREAS, performing the necessary and required maintenance per the lease agreement is in the best interest of the Airport and its tenant, the Federal Aviation Administration. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Airport Fund Increase Estimated Revenues: Airport Rents & Leases $90,000 Increase Appropriations Transfer to Capital Projects Fund $90,000 Airport Improvement Capital Proiect Fund Increase Estimated Revenues: Transfer from Airport Fund $90,000 Increase Appropriations Construction $90,000 Ordinance No. 2682 -2013 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of April 2013. � PAT PORTER, MAYOR ATTEST: San ra o igh, CiAy Clerk / Approved by Finance: % h✓!� Introduced: March 20, 2013 Adopted: April 3, 2013 Effective: April 3, 2013 New Text Underlined; ]DELETED TEXT BRACKETED] cc Sew%vtWth&(�vea,r lC. Aai/ PevLi �' I%L2T 305 N. WILLOW Sr. SUITE 200 KENAI, ALASKA 9%11 TELEPHONE 907- 283-7951 FAX 907- 2833737 Municipal Airport Memo To: Rick R. Koch - City Manager From: Mary Bondurant - Airport Manager Date: March 13, 2013 Subject: Kenai AFSS - Fund Appropriation for Capitol Improvement Project On October 3, 2012 City Council approved Ordinance No. 2651 -2012, authorizing the City Manager to enter into a 10 year lease to the FAA for an automated flight service station. The lease was effective October 1, 2012, with rent set at $10,000 per month for a term of ten (10) years. One condition of the lease was that the Airport performs necessary and required maintenance items to meet building requirements and specifications. It is my recommendation to establish a capital improvement project with the $90,000 from lease revenue (October 2012 through June 2013) for the required maintenance expenditures. If you have any questions, please contact me Cc: Terry Eubank — Finance Manager www.kenai.airport.com